Tag Archives: Customer focus

Jiro Dreams of Sushi

Jiro Dreams of Sushi is a documentary on a Japanese sushi restaurant, Sukiyabashi Jiro, that is full of great quotes for those interested in continual improvement. Throughout the film people discuss a never ending focus on doing better and better – never becoming complacent.

Quotes from Jiro Dreams of Sushi:

Jiro: “Once you decide on your occupation you must immerse yourself in your work. You have to fall in love with what you do… You must dedicate your life to mastering your skill. That is the secret of success and the key to being regarded honorably.”

Jiro: “There is always room for improvement.”

Jiro: “I do the same thing over and over, improving bit by bit.”

Jiro: “I feel ecstasy every day. I love making sushi.”

Fish seller: “When you think you know it all, you then realize you are just fooling yourself.”

Food critic ~ “when you work for Jiro he teaches you for free. But you have to endure years of training.

”‹Apprentice: “But there is only so much you can learn from words. I have to keep practicing.””‹

Jiro: ~ (paraphrased and changed a bit) “When the fish gets to me the sushi is 95% complete. I prepare it in front of the customer so get the credit but the truth is the person doing the least work gets most of the credit”

Jiro’s eldest son, Yoshikazu: “Always strive to elevate your craft.”

The focus is on the dining experience in total. The meal is composed of elements that are designed to work together with the focus on quality of the individual dishes but also on the interaction between the individual items and the complete experience.

The respect for suppliers is also seen in the film. Jiro’s eldest son says (approximately) “we are experts at sushi and we know a great deal but the tuna vendor we use knows more about tuna, the shrimp vendor knows more about shrimp… we trust them.” Later Jiro says (again from my memory), “we buy our rice from our vendor because Mr. ___ (I can’t remember the name) knows more about rice than anyone else, I trust him to provide what is best for us.”

They even touch on the bigger picture. Jiro’s son: “overfishing is the problem. Finding good fish is getting harder and harder… There should be regulations enforced on only catching bigger fish. Business should balance profit with preserving natural resources.”

As with any example there are particulars that you can learn from and specifics that don’t apply well to your situation. I know next to nothing about kitchens of world class restaurants but what I do know is they seem extremely dedicated to their work (much more so than many other organizations are interested in striving for). They also seem to be more autocratic than most other modern organizations. They also seem much more focused on perfecting the process to achieve the best result even if that requires a great deal more work than some alternative that produces very good results.

Related: You’ve Got to Find What You Love (Steve Jobs Stanford address)Respect People by Creating a Climate for Joy in WorkPositivity and Joy in WorkThe Customer is the Purpose of Our Work

Jeff Bezos: Innovation, Experiments and Long Term Thinking

Jeff Bezos, bought the Washington Post. He has long showed a willingness to take a long term view at Amazon. He is taking that same thinking to the Washington Post:

In my experience, the way invention, innovation and change happen is [through] team effort. There’s no lone genius who figures it all out and sends down the magic formula. You study, you debate, you brainstorm and the answers start to emerge. It takes time. Nothing happens quickly in this mode. You develop theories and hypotheses, but you don’t know if readers will respond. You do as many experiments as rapidly as possible. ‘Quickly’ in my mind would be years.”

The newspaper business is certainly a tough one today – one that doesn’t seem to have a business model that is working well (for large, national papers). I figured the answer might be that a few (of the caliber of Washington Post, New York Times…) would be owed by foundations and supported largely by a few wealthy people that believed in the value of a strong free press and journalism. Maybe Bezos will find a business model that works. Or maybe he will just run it essentially as a foundation without needing a market return on his investment.

The Guardian (where the article with the quote was published) is an example of good journalism by a foundation. ProPublica is another (though I guess it is really a non-profit but most of the funding seems to be via foundations).

Related: Jeff Bezos and Root Cause Analysis (2009)Amazon Innovation (2006)Jeff Bezos on Lean Thinking (2005)Jeff Bezos Spends a Week Working in Amazon’s Kentucky Distribution Center (2009)

Stated Versus Revealed Preference

My father provided me a good example of the flawed thinking of relying on stated preference when I was growing up. Stated preference is, as you might deduce, the preferences voiced by customers when you ask. This is certainly useful but people’s stated preference often do not match there actions. And for a business, actions that lead to customers are more important than claims potential customers make about what will make them customers.

His example was that if you ask people if clean bathrooms in a restroom is required for a restaurant they will say yes. Potential customers will say this is non-negotiable, it is required. But if you eat at many “ethnic restaurants,” as we always did growing up, you would see many popular restaurants did not have clean restrooms. If the food at atmosphere was good enough clean restrooms were negotiable, even if customers stated they were not.

Now I think clean restrooms is a wise move for restaurants to make; it matters to people. Instead of creating a barrier to repeat customers that has to be overcome with much better food and atmosphere it is wiser to give yourself every advantage by giving the customers what they want. But I think the example is a simple example of stated versus revealed preferences.

McDonald’s gets a great deal of success by doing certain things well, including clean bathrooms, even if they miss on things some people think are important for a restaurant. McDonald’s really gets a fair amount of business for people driving a long distance that really want a clean bathroom and a quick stretch of their legs and quick food. This is a small percentage of McDonald’s customer visits but still a very large number of visits each day I am sure. Understanding, and catering to, the problem your customers are trying to solve is important.

The point to remember is what your potential customers say they will do is different than what they do. It is sensible to listen to stated preferences of customers just understand them for what they are.

We need to pay more attention to revealed preferences. Doing so can require putting in a bit more thinking than just asking customers to fill out a questionnaire. But it is worth the effort. A simple restaurant based example would be to have wait staff pay attention to what people leave on their plate. If you notice certain side dishes are not eaten more often, look into that and see what can be done (improving how it is prepared, substituting something else…).

Related: Voice of the CustomerThe Customer is the Purpose of Our WorkCustomers Are Often IrrationalPackaging Affects Our Perception of TasteBe Careful What You Measure

Quality Processes in Unexpected Places

This month Paul Borawski asked ASQ’s Influential Voices to explore the use of quality tools in unexpected places.

The most surprising example of this practice that I recall is the Madison, Wisconsin police department surveying those they arrested to get customer feedback. It is obvious that such “customers” are going to be biased. Still the police department was able to get actionable information by seeking the voice of the customer.

photo of a red berry and leaves

Unrelated photo from Singapore Botanical Garden by John Hunter.

Certain of the police department’s aims are not going to match well with those they arrest (most obviously those arrested wish the police department didn’t arrest them). The police department sought the voice of the customer from all those they interacted with (which included those they arrested, but also included those reporting crimes, victims, relatives of those they arrested etc.).

The aim of the police department is not to arrest people. Doing so is necessary but doing so is most similar in the management context to catching an error to remove that bad result. It is better to improve processes so bad results are avoided. How the police interact with the public can improve the process to help steer people’s actions away from those that will require arrests.

The interaction police officers have with the public is a critical gemba for meeting the police department’s aim. Reducing crime and encouraging a peaceful society is aided by knowing the conditions of that gemba and knowing how attempts to improve are being felt at the gemba.

All customer feedback includes bias and personal preferences and potentially desires that are contrary to the aims for the organization (wanting services for free, for example). Understanding this and how important understanding customer/user feedback on the gemba is, it really shouldn’t be surprising that the police would want that data. But I think it may well be that process thinking, evidence based management and such ideas are still not widely practiced as so the Madison police department’s actions are still surprising to many.

Quality Leadership: The First Step Towards Quality Policing by David Couper and Sabine Lobitz

Our business is policing, our customers are the citizens within our jurisdictions, and our product is police service (everything from crime fighting and conflict management to safety and prevention programs.)

If we are to cure this we must start to pay attention to the new ideas and trends in the workplace mentioned earlier that are helping America’s businesses; a commitment to people, how people are treated — employees as well as citizens, the development of a people-oriented workplace, and leadership can and does make a difference.

If we change the way in which we lead the men and women in our police organizations, we can achieve quality in policing. However, wanting to change and changing are worlds apart. The road to change is littered by good intentions and short-term efforts.

This article, from 1987, illustrates the respect for people principle was alive and being practiced 25 years ago; most organizations need to do a great deal more work on applying practices that show respect for people.

Related: Quality Improvement and Government: Ten Hard Lessons From the Madison Experience by David C. Couper, Chief of Police, City of Madison, Wisconsin – SWAT Raids, Failure to Apply System Thinking in Law EnforcementMeasuring What Matters: Developing Measures of What the Police DoThe Public Sector and W. Edwards DemingDoing More with Less in the Public Sector – A Progress Report from Madison, Wisconsin

Customers

Customer focus is critical to succeed with management improvement efforts. Few argue with that point, though my experience as a customer provides plenty of examples of poor systems performance on providing customer value (usability, managing the value stream well, etc.).

At times people get into discussion about what counts as a customer. Are customers only those who pay you money for a product or service? What about internal customers? What about users that don’t pay you, but use your product (bought from an intermediary)? What about users that use a service you provide for free (in order to make money in another way, perhaps advertising)? What about “internal customers” those inside your organization without any payment involved in the process?

I find it perfectly fine to think of all these as customers of slightly different flavors. What is important is providing what each needs. Calling those that actually use what you create users is fine, but I think it often just confuses people rather than adding clarity, but if it works in your organization fine.

To me the most important customer focus is on the end users: those that derive value from what your organization provides. If there is confusion between various customer groups it may be helpful to use terms like end user, but really using the term customer for a wide range or customers is fine (and modification such as internal customer to provide some clarity).

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Customer Focus by Everyone

There are many critical elements to a management system. One that is fundamental, yet still poorly executed far too often, is creating a system where all staff can focus on enhancing value to the customer every day.

If your enterprise does not focus on this, it should. If you think your enterprise does, my first, second and third suggestions are to think more critically about whether it really does. If the answer is yes, then you are lucky to work in such an organization.

Saying that customers are valued is easy. Actually designing systems to focus on providing value and continually improving to provide value more effectively is not. It really shouldn’t be obvious to a customer in 5 minutes of interacting with your organization that it is obvious customers are not very important.

It is very difficult to create a system with customer focus by all staff without several basic supports in place. Respect for people needs to be practiced – not just mentioned. If there isn’t time to work on improvements to the system, often meaning you have the equivalent of sickness management instead of a “health care system” that is a shame. The reality of most organizations seems to be to make it very annoying for customers to even bring an issue they are having to the attention of the organization and even then the gaol is to use the absolute least amount of effort for the band-aid that can be tolerated.

Staff have to be given authority to act in the interest of customers. But this can lead to chaos if a good system isn’t in place to steer this process. And without processes in place to capture (systemically) needed improvements there will be huge waste.

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My New Book: Management Matters

Image of the book cover of Management Matters by John Hunter

Management Matters by John Hunter is now available.

I have a new book in progress: Management Matters. It is now available in “pre-release format” via leanpub. The idea I am experimenting with (supported by leanpub) is pre-publishing the book online. The ebook is available for purchase now, and comes with free access to the updates.

My plan is to continue working on the book for the next few months and have it “release ready” by October, 2012. One of the advantages of this method is that I can incorporate ideas based on feedback from the early readers of the book.

There are several other interesting aspects to publishing in this way. Leanpub allows a suggested retail price, and a minimum price. So I can set a suggested price and a minimum price and the purchaser gets to decide what price to pay (they can even pay over suggested retail price – which does happen). The leanpub model provides nearly all the revenue to the author (unlike traditional models) – the author gets 90% of the price paid, less 50 cents per book (so $8.50 of a $10 purchase).

They provide the book in pdf, mobi (Kindle) and epub (iPad, Nook, etc.) formats. And the books do not have any Digital Rights Management (DRM) entanglements.

Management Matters covers topics familiar to those who have been reading this blog for years. It is an attempt to put in one place the overall management system that is most valuable (which as you know, based on the blog, is largely based upon Dr. Deming’s ideas – which means lean manufacturing are widely covered too).

I hope the book is now in a state where those who are interested would find it useful, but it is in what I consider draft format. I still have much editing to do and content to add.

Leanpub also provides a sample book (where a portion of the content can be downloaded to decide if you want to buy). If you are interested please give it a try and let me know your thoughts.

Simple Customer Care: Communicate

Some management issues are hard. You are often balancing priorities. Sometimes though it is extremely simple: either you have concern for customers and take actions to back that up or you have some concern but don’t do anything about it.

Here are some examples that show you really just don’t care.

If you have invested millions in setting up computer systems to authorize, and reject, payments for say a credit card and you fail to notify customers when you reject a charge you just really don’t care. There might have been an excuse 10 years ago that it was too difficult to notify people. Today if your IT people can’t do that, hire a new CIO and have them create an IT support system that isn’t an embarrassment to any institution relying on it.

Another sign of an extremely weak IT and customer focus presence in an organization would be deleting records of your customers after 6 month or 1 year or ever. Again this is common among the too-big-to-fail financial institutions that seem much more able to design system to extract fees and justify ludicrous bonuses to executives than to provide the most basic services for customers.

Amazon, and most any non financial-too-big-too-fail institution, keeps your records available for you. The too-big-too-fail crowd though won’t keep records as well as the site you buy books from. They slap fees on customers if they want to get the paper statements they used to get for free. That is fine with me (the fees are far too high, but the concept is fine with me). The too-big-too-fail crowd wants to save money by not mailing you paper. Fine.

Then, deciding to delete your records after 6 months, or a year… is just a sign you have no interest in serving customers. Other than an organization that has no interest in customer service, suggesting such a thing would be a direct ticket to remedial training on providing value to customers.

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Customer Focus

Customer Focus is at the core of a well managed company. Sadly many companies fail to serve their customers well. To serve customers, a thorough understanding of what problem you solve for customers is needed. The decisions at many companies, unfortunately, are far removed from this understanding.

It is hard to imagine, as you are forced to wind your way through the processes many companies squeeze you through that they have paid any attention to what it is like to be a customer of their processes. When you see companies that have put some effort into customer focus it is startling how refreshing it is (which is a sad statement for how poorly many companies are doing).

If the decision makers in a company are not experiencing the company’s products and services as a customer would that is a big weakness. You need to correct that or put a great amount of energy into overcoming that problem.

Another critical area of customer focus is to know how your customers use your products. It isn’t enough to know how you want your products to be used. Or to know the problems you intended people to use your products for. You need to know how people are actually using them. You need to know what they love, what they expect, what they hate, and what they wish for. This knowledge can help offset experiencing the products and services yourselves (in some cases getting that experience can be quite difficult – in which case you need to put extra effort into learning the actual experience of your customers).

You cannot rely on what people tell you in surveys. You need to have a deep understanding of customers use of the products. Innovation springs from this deep understanding and your expertise in the practice of delivering services and building products.

One of my favorite improvement tips is to: ask customers what 1 thing could we do better. It is very simple and gives you an easy way to capture what customers really care about. You shouldn’t rely only on this, but it is an extremely powerful tactic to use to aid continual improvement (with customer focus).

Related: Delighting CustomersThe Customer is the Purpose of Our WorkCustomer Focus and Internet Travel Search

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Pay Attention to the Results that Matter

Play pumps is a great sounding idea. Most people reading this blog have clean tap water a few steps away. Over a billion people today still struggle to get water every day. A common method to get water is using pumps to bring up water from deep in the ground.

Some energy is needed to bring up the water and that often mean people (at time wind energy is used). Most sites that are providing water to villagers don’t have integrated energy system that can be tapped to bring the water up – as most of those of the readers of this blog rely on (without having to think about it).

Play pumps had the idea of putting a merry-go-round on the site and letting children playing on it provide the energy. It sounded great and I wrote about it on my engineering blog. Many others found it exciting and funded it with tens of millions (The USA government, Steven Case foundation [AOL founder], )… Which is great.

Frontline, which is a great news organization, went back to look at the success of the program after much fanfare in the marketing of the program. Sadly the pumps are having many issues. The solution does not appear to have been executed well.

Several factors are extremely disappointing. There seems to be little customer focus. As with any enterprise that fails this basic tenet of good management this spells trouble. The maintenance process appears to be completely broken. In our throw away lives maintenance is often a minor project point. For bringing water to those without it maintenance is known to be the primary issue. For decades the failure of program has had this as the primary reason (the possible competition is corruption). Failing on the known largest issue is again extremely disappointing.
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